Tips for Smart Investing

Momentum investment revolves around the idea of ​​following the recent trend of a two-way security. In the "long" context, investors will essentially "buy hard, but hope to sell even higher." With this methodology, it is essential to take advantage of stock price trends. once a stock has established a course, it is more than likely that it continues to follow that path. The goal is that once a security has a fixed trajectory, it results in timely and profitable transactions.

Although many investors are looking for equity dynamics, this can be very difficult to define. There is a lot of debate about the metrics on which it is best to focus and the poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks-style sheet music, helps us solve this problem.

Below we examine HDFC Bank (HDB – Free Report) , a company that currently holds a Momentum style score of B. We also discuss price changes and revisions to earnings estimates, two of the key aspects of the Momentum style score.

It is also important to note that style scores complement Zacks Rank, our stock valuation system with an impressive track record of outperformance. HDFC Bank currently has a # 2 Zacks ranking (purchase). Our research shows that shares rated Zacks Rank # 1 (strong buy) and # 2 (buy) and style notes of A or B outperformed the market over the period of a subsequent month.

You can see the current list of Stocks Zacks # 1 here >>>

Ready to beat the market?

In order to see if HDB is a promising time choice, let's look at some Momentum style elements to see if this financial services provider is holding up.

Examining the activity of the short-term price of an action is a great way to determine if it has momentum, as this may reflect both the current interest in an action and the fact that the Buyers or sellers are winning it right now. It is also useful to compare a security to one's industry. This can show investors the best companies in a particular area.

For HDB, equities rose 0.43% over the past week, while Zack Banks – Foreign increased 3.32% over the same period. Equities also look pretty good in the long run, with the monthly price change of 4.29% comparing favorably with the sector's 1.89% performance.

Although any action can see its price increase, it takes a real winner to systematically beat the market. This is why it can also be useful to take into account long-term price indicators, such as the performance of the last three months or the previous year. During the last quarter, HDFC Bank shares increased by 16.75% and increased by 1.86% over the last year. In contrast, the S & P 500 has only grown by -9.78% and -4.17%, respectively.

Investors should also pay close attention to the average volume of HDB transactions over 20 days. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with a volume above the average is usually a bullish sign, while a falling stock with above average volume is generally bearish. HDB currently holds an average of 670,154 shares in the last 20 days.

Revenue Outlook

The Zacks Momentum Style Score also takes into account trends in revisions and estimates, as well as price changes. Please note that estimation revision trends also remain at the heart of Zacks' ranking. A good path here can help show promising results, and we've seen it recently with HDB.

Over the past two months, 1 the earnings estimate has increased relative to none during the year. These revisions helped to increase the consensus estimate for HDB from $ 3.33 to $ 3.38 over the past 60 days. With regard to the following exercise, 1 estimate increased, but no downward revision was made during the same period.

Bottom line

Given these factors, it should not be surprising that HDB is a No. 2 title (buy) and boasts a momentum of B. If you are looking for a new choice that should take the scale In the short term, make sure you keep HDFC Bank on your list.